MandrakeSoft's financial reorganization 2003-01-15
The liabilities accumulated by MandrakeSoft through a series of quarterly losses have prompted the company to file for "declaration de cessation des paiements". The filing, similar to the U.S. Chapter 11-Reorganization, took place on January 13, 2003.
This reorganization of liabilities enables MandrakeSoft to continue its current operations, which are showing increases in revenue and significant decreases in expenses. MandrakeSoft's strategic partners are supporting the company in this process and the MandrakeSoft team is focused on continuing to deliver high quality services and products to its customers.
Following this filing and with the support of the court via a court-appointed Administrator, MandrakeSoft will be protected from its creditors, renegotiate its liabilities and prepare a continuation plan to be approved by the French Court in the coming months.
Version 9.0 of the product was a success both technically and commercially and the company is now focused on Version 9.1 which will be announced as scheduled in April.